1. Session Three Date Location

2. Contact information:
Dave Vick
Vick & Associates, Inc.
8700 E. Vista Bonita Drive
Suite 240
Scottsdale, AZ

3. Disclaimer
The Principles of Retirement Planning Workshop is an educational program, and is not intended to sell investment or insurance products, nor is it intended to provide tax or legal advice. Consult with your tax advisor and/or legal counsel for suitability for your specific situation.
Hypothetical and/or actual historical returns contained in this presentation are for informational purposes only and are not intended to be an offer, solicitation, or recommendation. Rates of return are not guaranteed and are for illustrative purposes only.
Projected rates do not reflect the actual or expected performance within any example or financial product.
Dave Vick is an Investment Advisor Representative with Redhawk Wealth Advisors, an SEC Registered Investment Advisor. Insurance and annuity products are offered through Vick & Associates, Inc.

4. Course Introduction:
This is a course that dives deep into the concepts of retirement planning from a financially conservative point of view. We will use the book “Bat-Socks, Vegas and Conservative Investing” and it’s accompanying workbook “The Principles of Retirement Planning” as our guide through this vantage point. There are other retirement topics that are important, however we will focus for this class on a financially conservative point of view.

5. Let’s Review Last Week? A New Model, The ABCs
Yellow Money, Cash is King
Green Money, Protection is Powerful
Red Money, Tactical vs.‘Buy and Hold’.
What if it Happens Again?

6. Challenges to Retirement Income Planning
Chapter Ten:
Challenges to Retirement Income Planning
The Retirees Biggest Need:
Funding Your Quality of Life!

7. THE BIGGEST NEED… INCOME
“In 1933, Congress passed the Social Security bill that enabled people who were age 65 to receive income checks monthly from the government starting in It was originally intended as a supplement to income for the elderly, yet has turned into the major source of income for many retirees. It is interesting to note the average retirement age in 1910 was 74 years old, and the average in 2006 was age 62.”
“Bat-Socks, Vegas & Conservative Investing” by David P. Vick
Retire at 62, when is the last one expected to die?
p. 83

8. THE BIGGEST NEED… INCOME
“…according to government actuarial tables a male age 62 is expected to live to just about 80 years old. If he reaches 75 he’s expected to reach age 85, and if he reaches age 85 he’s expected to live until age 90 plus. Women of those ages (never ask though) are expected to live another year and a half to two years longer than their male counter parts.”
“Bat-Socks, Vegas & Conservative Investing” by David P. Vick
Retire at 62, when is the last one expected to die?
p. 83

9. THE BIGGEST NEED… INCOME
10.3 What is your plan to make your income last up to three decades? 10.4 How would your income plan account for the threat of market losses?
Retire at 62, when is the last one expected to die?
p. 83

10. Dave Vick Video: Accumulation vs. Distribution

11. Accumulation on $500,000 Inverse Returns Effect
Hypothetical Index - Beginning Value $500,000 Annual End of Year Inverse End of Year Year Return Value Return Value 1 28% $640, % $310, % $576, % $272, % $662,400 2% $278, % $775,008 15% $319, % $782,758 26% $403, % $986,275 1% $407, % $1,134,216 17% $479, % $1,156,901 15% $547, % $1,018, % $493, % $631,205 28% $631,205
Commutative principle of multiplication, as long as you don’t take anything out of the equation. But have having said that if you are 62 and getting read to retire…what happens.

12. Income on $500,000 Inverse Returns Effect
Hypothetical Index -Beginning Value $500,000 Withdrawal $35,000 Inflation 3% Annual Annual End of Year Year Return Withdrawal Value 1 28% $35,000 $605, % $36,050 $508, % $37,132 $547, % $38,245 $602, % $39,393 $569, % $40,575 $676, % $41,792 $736, % $43,046 $707, % $44,337 $578, % $45,667 $313,017
Need to plan for 30 years, if you screw up the first 10 years, Wal-Mart is going to need greeters.
Graphs out ther in the market you tell me…4% drops off in about 30 years…what that tells me is you will guestimate the return, hope withdrawals work and hope and pray you don’t run out of money. Or you could guarantee it. Which would you prefer. Problem with you…you believe what I just said is too good to be true. But I know its true as a financial planner. Companies put these out in contracts…sign and guarantee it, and you are contractually guaranteed. Do mutual funds to that? No they give you a prospectus and you get to pray.

13. Income on $500,000 Inverse Returns Effect
Hypothetical Index Beginning Value $500,000 Withdrawal $35,000 Inflation 3% Annual Annual End of Year Year Return Withdrawal Value 1 -38% $35,000 $275, % $36,050 $205, % $37,132 $172, % $38,245 $160, % $39,393 $163, % $40,575 $124, % $41,792 $103, % $43,046 $75, % $44,337 $23, % $45,667 -$15,078
Need to plan for 30 years, if you screw up the first 10 years, Wal-Mart is going to need greeters.
Graphs out ther in the market you tell me…4% drops off in about 30 years…what that tells me is you will guestimate the return, hope withdrawals work and hope and pray you don’t run out of money. Or you could guarantee it. Which would you prefer. Problem with you…you believe what I just said is too good to be true. But I know its true as a financial planner. Companies put these out in contracts…sign and guarantee it, and you are contractually guaranteed. Do mutual funds to that? No they give you a prospectus and you get to pray.

14. Green Money Income Plans
Split Annuities – What are they? What is appealing about them? What is not? Guaranteed Withdrawal Benefits – Again, what are they? Why would they be good? What could be the downside?

15. $25,271 per year for 10 years. Value after 10 years $0.00
Split Annuity $500,000
10 Year Income Bucket
10 Year Growth Bucket
$215,000
$285,000
Plus 8% Bonus,
GWB 6.5%
$2,106 per month, or
$25,271 per year for 10 years. Value after 10 years $0.00
Guaranteed Income Account Value: $577,783. Could yield between $28,000 to $40,000 for life.

16. Maximum Income, but Delayed?
$500,000
8% Bonus
6.5% GWB
10th Year Guaranteed Income Account: $1,013,654 (Pays out between $35,000 - $70,000 per year for Life)

17. Key Questions: 10.7 Is guaranteeing income important to you in retirement? Explain? 10.8 What do you like most about the Split Annuity concepts? 10.9 What do you like most about the Split Annuity concepts?

18. Challenges with 401k plans
Chapter Eleven:
Challenges with 401k plans
Understanding Your Options

19. I Should Have Listened – Seven Problems with Your 401(k)
Problem #1 – Is your 401(k) compliant? Is it at risk by IRS Standards? Problem #2 – Roth Accounts in a 401(k) have issues. Do you have a DRAC? Problem #3 – Limited Choices. Does your plan have the choices you wish they had? What choices would you like to add to your plan? Are you confident in choosing assets? What’s your experience?

20. I Should Have Listened – Seven Problems with Your 401(k)
Problem #4 – The 20% withholding trap Problem # 5 – Limited Beneficiary Options. When was the last time you checked the beneficiaries on your qualified plans? How would you arrange them? Problem #6 – Required Minimum Distribution Errors. Rules, Rules, Rules? Problem # 7 – 401(k)s: The Non-Stretch Plan. Do you desire to leave Qualified $ to family?

21. Understanding Your 401(k) Options
Consider In-Service, Non-Hardship Withdrawals to:
Create Better Income Solutions
More Investment Options
Plan Consolidations
More Beneficiary Options
Stretch IRA
Protect Principal
Get Professional help

22. Key Question: Is Having More Options and Control of your 401(k) Important to you Right Now? In Retirement?

23. Finding a “perfect fit” Advisor
Chapter Twelve:
Finding a “perfect fit” Advisor

24. You Probably Need a Sherpa
12.1 What are the qualities you look for in an advisor?
12.2 What are your expectations for communication with your financial advisor?

25. You Probably Need a Sherpa
Business Temperaments
Relational/Relational
Relational/Business
Business/Relational
Business/Business
12.5 What type of business
temperament do you think
you are? Explain.
“How do you determine what the “kind of person” is the planner you would like to work with? First, you have to know a little about yourself. In doing so, I think Tim Templeton’s description of four business temperaments in his book The Referral of a Lifetime (3) might be helpful. I’ll attempt to describe them, though the labels are Tim’s:
Relational/Relational: These are folks who start and end with the love of relationships. They are people-people inside and out. Somehow business just happens.
Relational/Business: R/B people have an easy time developing relationships, but when the topic turns to business, they quickly get in to tactical mode.
Business/Relational: B/R people may be a little uncomfortable with relationships upfront and use “business talk” as a way to get started. However, once people become their clients, the relationships are long and fulfilling. They have very loyal clients.
Business/Business: B/B people are those who are not relationally motivated on the front end or the back end of a business relationship. They are business all the time and somehow relationships happen. It’s wrong to think that this is not the kind of person you would want simply because of the business nature of the advisor. There are people who need financial advice that are B/B also, and the R/R person irritates them to no end! (4)”

26. You Probably Need a Sherpa
Trust
‘Likeability’
Competence
Understands the ABCs
Longevity – are they going to be around when you need them?
Client-Partner?
Need to work with someone that knows the terrain, longevity, you like and trust.
What happens if you die or retire?...You find another advisor. What happens when your doctor dies? Plenty of ABC advisors all over the country.
What is a client partner…go through the list of questions. If you advisor partners with you, you should partner with him…make his business a success. Talk him up. Now I hate asking for referrals and I don’t, but we have little get togethers, we are having one next week, come on down and bring some friends.

27. You Probably Need a Sherpa
Questions You Might Ask a Potential Advisor
What is your area of specialty? Do you have an area of focus?
What is your investment philosophy?
How long have you been a planner?
If you haven’t been in the business long, who do you have as a mentor or back-up planner to help you plan?
What licenses do you hold? Why those licenses?
Do you have a planning team that includes attorneys or accountants or other advisors?
Can I speak with 3-4 of your clients?
Are you familiar with the ABC Model of Investing and do you use it in your planning?
How do you make use of Fixed Index Annuities in your practice?

28. You Probably Need a Sherpa
Questions You Might Ask a Potential Advisor
Do you consider yourself a “safe money specialist?”
Tell me about the manner in which you communicate with your clients.
Do you have client events?
Do you have a newsletter?
Do you conduct regular reviews with your clients, and if so, how often?
If I have a question after I become a client of yours, whom do I speak with?
What types of assets do you use in planning?
Can I visit your next client event?
Are there any fees in working with you?
Tell me about the planning process.
Have you ever had any regulatory actions taken against you?
12.8 Which questions do you think are important. What other questions might you ask a potential advisor?

29. How to work through a financial decision
Chapter Thirteen:
How to work through a financial decision

30. Deal or No Deal
13.1 What key elements are involved for you when making a financial decision?

31. Three Elements of a Financial Decision
Logic – In what ways does your current plan make sense to you? Belief/biases – Are you aware of any bias you hold regarding your investments? Media Bias? Do you have any beliefs about assets or groups of assets that need to be changed? Emotions -
Greed
Logic: First, is the area of logic—the science of reasoning. In other words, it’s how we “make sense” of something. We have an innate need to reasonably work through an issue with facts and details. We need to rationally decide on an issue.
Beliefs: Secondly, beliefs can be the stimulus for either a good or bad buying decision. What you believe about a topic will eventually determine how you feel about it. Counselors spend hours and hours trying to discover the beliefs of their patients driving their behaviors. For instance, if you have an underlying belief that money is evil, you will continually battle the idea of making more of it. If you believe money is king, then you won’t be satisfied until you’ve tried every avenue leaving no stone unturned, including shady investment schemes, to try and get rich. Beliefs matter.
Emotions: every study in academia shows buying is an emotional decision. Make no mistake about it. When you are planning your retirement and choosing conservative methods and financial tools, your emotions are fully engaged.
In fact, there are whole divisions within universities that study the emotional dynamics of investing labeled “behavioral finance,” along with the impact of emotions on economies. John W. Rogers, Jr. emphasizes the point in his column “The Patient Investor” on Forbes.com:”
“…behavioral academics are on the firmest ground citing the madness-of-crowds phenomenon. Most people make the same mistakes over and over. The most prevalent one is to pile in at the peak with everyone else. Since fitting in is easier than sticking out, investors flock together even when the results turn out bad.” (3)
Confidence
Denial
Despair
Despair

33. Key Question: In what ways do you think an ABC Plan can help you avoid the emotional ups and downs of investing?

34. Process, Process, Process
Investigation
Recommendation
Implementation
Review and Adjust
This is a process you should take your advisor through…you should be in control of the process, not your advisor. You want your advisor to meet with you…not once very five years. How many of you have had an advisor that when everything goes wrong they go dark?
In battling emotional investing, you need a process to work through to protect yourself from making a potentially devastating purchasing decision. I suggest a process of investigation, recommendation, and implementation, followed by a healthy dose of review and adjustments. This process should help you work through your emotions, challenge your beliefs, and reasonably pursue a financial decision. The process should give you the time to make an informed decision.
Different planners plan differently. You can set your own pace in a decision making process by establishing the ground rules at the beginning of your work with an advisor. Knowing a simple planning system you can use with advisors will be helpful.
The first planning step is “investigation.” During this step, you will discover all the risk, leaks, and gaps in your current financial plan. You should fill out a financial review form listing all your assets (appendix chapter  one) and income. The financial review form can help you see your assets as a whole and how they relate to each other. You will want to list the concerns you have about your assets, your goals, and of course decide on the ABC Allocation you believe best fits you. You will want to pay close attention to the time horizon you have for your goals. This is crucial when it comes to deciding on the assets you use in your plan. An advisor can help you think through possible solutions to the concerns and goals you have.
Second, either develop for yourself or receive from an advisor a plan which includes everything your goals set out to accomplish. This plan should be detailed and involve assets and income from specific sources. The plan should include what you want to accomplish in at least the next five years with an ability to adjust as necessary.
Third, implement your plan when you have worked out the details and you are confident it is a solution to problems—one that will accomplish your goals. It will involve a lot of paperwork and is best done in a separate meeting so you have time to go over the details with your advisor. You will most likely have to make transfers into different companies, which will create a conservation attempt in some form, by the current company holding your money. Just remember, it’s your money, not theirs. This is something they often forget.
Lastly, you will want to review the plan once all the monies are transferred to make sure they are where you wanted them to be and in the amounts you had determined for your plan. I would suggest you review the plan at least every six months to make sure you are on the right path. If you have assets in Column C, the Red Risk portion, you will want some type of a review quarterly. Remember your goals and especially your time horizon. For conservative investors this is not a sprint, but a marathon.”
“Given the right process, your emotions will be given the opportunity to be led by your beliefs, which will be challenged by the truth, leading to a logical conclusion.

35. Process, Process, Process
13.10 How important to you is using a good financial decision making process? Explain.
This is a process you should take your advisor through…you should be in control of the process, not your advisor. You want your advisor to meet with you…not once very five years. How many ofyou have had an advisor that when everything goes wrong they go dark?
We generally meet twice a year, client events once a month and big events twice a year.

36. Seven steps to creating your own retirement plan
Chapter Fourteen:
Seven steps to creating your own retirement plan

37. Seven Steps to an ABC Plan
Step One – Get Your Assets Together (App. One) Step Two – Write Down Retirement Goals and Budgets Step Three – ABC Your Assets (Know your Risk Tolerance, App. Three) Step Four – Choose an Advisor Step Five – Process, Process, Process Step Six – Review and Adjust Step Seven – Sleep at Night!

38. Please complete our Evaluation Form…
In what ways have you resonated with the Financial ABC’s of Retirement Planning?
Please complete our Evaluation Form…
Test and evaluation form…
Option one: call admin and set up time
Option two: have may calendar here, put your name in the calendar.
Have an event next week…love to have you.

39. CONTACT INFORMATION
Dave Vick
Vick & Associates, Inc.
8700 E. Vista Bonita Drive
Suite 240
Scottsdale, AZ

40. Thank you for Attending!